(NAPSW)Retirement is a concept thats constantly being reinvented. A comfortable retirement wasnt even a widespread economic goal until after World War IIand its changing again, as the economy is making that goal more difficult to reach. Fortunately, seniors do have options.

According to executives at The Lifeline Program, seniors must now look well beyond traditional tools if they want some sort of retirement.

For most seniors, the notion of ending their work life at age 65 with a golf course membership and a gold watch is no longer the norm. Recent studies show that most seniors are working longer with little hope of an idyllic retirement.

Traditional sources of retirement income can no longer be relied on. Pensions have become rare and many seniors have not saved enough. The recession and housing crash have hurt retirement accounts and housing values.

Financial-planning experts suggest saving more, but thats not always possible. Other options do exist, though, and its important to do your research. For example, performing a reverse mortgage on a home, selling a life insurance policy through a life settlement and exploring alternative investments are all tactics that can add financial security and help seniors realize some of their dreams for retirement.

For Joan Clary (age 70), a substitute schoolteacher from Oakhurst, Calif., the dream was to meet actress Betty White. Fortunately, Clary won the recent Lifeline Meet Betty White Facebook contest and was flown to Los Angeles to meet the actress. Clary was thrilled to win. As I turn 70, I realize Betty is one of my last role models. Its a joy to meet her after admiring her for so many years, said Clary.

Founded in 1989, The Lifeline Program offers life settlements as a new financial planning option to baby boomers and retirees. The company partners with insurance agents, broker dealers and financial planners to establish life settlement business lines. For more information, visit http://www.thelifeline.com, follow the company on Facebook at Facebook.com/LifelineProgram, on Twitter at twitter.com/LifelineProgram or on YouTube at youtube.com/user/TheLifelineProgram. You can also call 855-GO-BETTY (855-462-3889).

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Retirement In Need Of Reinvention

NEW YORK--(BUSINESS WIRE)--

The Guardian Insurance & Annuity Company, Inc. (GIAC), a wholly-owned subsidiary of The Guardian Life Insurance Company of America (Guardian) today announced the launch of a new website to help plan sponsors and plan participants navigate the increasingly complex 401(k) marketplace.

Effective July 1, 2012, The Department of Labors (DOLs) new requirements for plan service providers to begin providing plan sponsors with enhanced fee disclosure went into effect. Guardian Retirement Solutions launched Understanding Plan Fees (www.guardianretirement.com/understandingfees) to provide information and tools to help plan participants and plan sponsors understand their retirement plan fees, the services they pay for and the value the different service providers bring to the table. The website is open to any individual or company.

Simply providing a statement without any explanation has the potential to confuse and frustrate plan participants. Guardians website educates the consumer by providing information on not only the fees they are paying but the services and value that different players involved in administering a 401(k) provide, said Jason Frain, Vice President, 401(k) Product Management and Development, Retirement Solutions. At the end of the day, its important for sponsors and participants to understand who is working on their behalf to ensure they have a tax-deferred benefit to save for retirement.

The Guardian website includes a host of tools and educational resources, including:

Shortly following the changes on July 1, plan sponsors will begin providing their participants with annual and quarterly information about plan and investment fund fees and expenses. Fee disclosure focuses on the DOLs initiatives to increase transparency surrounding plan and investment expenses as they impact plan sponsors and participants.

Its impossible to assess the fees on your 401(k) statement unless you understand the services different providers are performing. Guardians Understanding Plan Fees (www.guardianretirement.com/understandingfees) lays out in plain English the team of players who each provide unique services and expertise to create a great retirement solution, said Frain. . In the final analysis, its important to understand the value you receive for the fees you pay.

About Guardian

A mutual insurer founded in 1860, The Guardian Life Insurance Company of America and its subsidiaries are committed to protecting individuals, business owners and their employees with life, disability income, dental insurance products, and offer funding vehicles for 401(k) plans, annuities and other financial products. Guardian operates one of the largest dental networks in the United States, and protects more than six million employees and their families at 115,000 companies. The company has approximately 5,000 employees in the United States and a network of over 3,000 financial representatives in more than 80 agencies nationwide.

For more information about Guardian, please visit: http://www.GuardianLife.com

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Guardian Retirement Solutions™ Launches New 401(k) Fee Disclosure Website

Sooner or later, each of us will come to a point in our life when we cross over to join the ever-growing group of retirement-age people. Many of us will wonder how it is possible that we have become 65 years old. Hopefully the shock will be momentary, and we will get on with living.

Of course, to experience a fulfilling retirement life we have to plan and prepare for this moment. Rolling into age 65 without having taken the necessary steps to prepare can result in confusion, stress, and boredom. Worst of all, those who dont prepare risk missing out on opportunities to take on inspiring second careers or exciting new hobbies.

It is not easy to plan and prepare for retirement when today already seems to consume 110 percent of our time and effort. One can easily become overwhelmed with the myriad of investment options and convoluted requirements for Social Security and Medicare.

Amid all of this complexity, there is one rule of thumb to understand and follow. It readily applies to financial preparations for retirement but also extends beyond that: Live within your means. Or to put it another way, dont spend your money before you earn it. This rule of thumb can help you to focus your finances before and during retirement. Heres why living within your means is the key to a fulfilling life before and during retirement:

You avoid adding debt. Buying on credit has been the downfall of many hard working people. Granted, there may be emergency situations where you have no choice but to break out the credit card to tide you over. The problem is buying things on credit you do not need. Spending money you do not have for something you want, regardless of whether you can afford it, is a recipe for disaster. A better course of action is to save up until you can pay cash instead of charging it. Dont spend your money before you earn it. And dont try to keep up with your neighbors by chasing more bright and shiny things. Debt avoidance is especially important in retirement when your income is reduced.

Saving becomes easier. If you are living within your means, when you get to the end of the month you should have something left over. Since you are not spending this residual you can put a portion of it aside into savings. If you continue to set aside a little something on a regular basis it will grow. However, if you are living beyond your means, this potential savings will go toward credit card interest or other black holes.

You discover what makes you content. Living within your means gives you a better understanding of what is most important to you. Instead of buying impulsively, you carefully weigh the cost and start to make better decisions. You realize it is not necessary to always eat at five-star restaurants. Suddenly Levi jeans look just as good as $200 dollar pants. A new house is not so critical if it will lock you into a big long-term mortgage. You start to grasp the reality that material possessions do not equal personal freedom. If you cannot afford it, you discover that life will go on and you can still be content.

Dave Bernard is not yet retired but has begun his due diligence to plan for a fulfilling retirement. With a focus on the non-financial aspects of retiring, he shares his discoveries and insights on his blog RetirementOnly the Beginning.

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How to Prepare for a Fulfilling Retirement

(MoneyWatch) How much retirement income can you generate from your 401(k), IRA, and retirement savings? It's a critical question because it will affect just how much money you'll have to spend for the rest of your life. The answer can vary widely, depending on a number of factors, the most important being the method you use to generate retirement income, as discussed in my recent post, "My four favorite ways to generate retirement income." Your age, sex, and marital status also have a significant influence. And your income will depend on a number of economic factors, such as interest rates, dividend payout rates, and annuity purchase rates in effect at the time you retire.

In order to help you discover the answer to the question I posed above, here's the third installment this year of my quarterly retirement paycheck scorecard series. It shows you the amount of retirement income that can be generated from $100,000 in retirement savings as of the beginning of July 2012, for each of the three methods of generating retirement income I summarized in the post mentioned above. You may want to review that post for background and to familiarize yourself with the advantages and disadvantages of each method.

My four favorite ways to generate retirement income IRAs and 401k: 3 ways to generate retirement income

Method #1: Interest and dividends only

One way to generate retirement income is to invest in a mutual fund that pays a regular dividend and then use just the interest and dividend payments to cover your living expenses. Because you aren't dipping into your principal, there's a very good chance you won't outlive your money. And this method offers the maximum flexibility and access to your retirement savings. The downside is this method produces the lowest amount of retirement income, as you'll see by comparing this scorecard to the next two scorecards in this series.

Here are the estimates of annual dividends paid from various Vanguard mutual funds that have regular dividend payouts. I've also included the payout rate -- the annual income as a percentage of the investment -- for the purposes of comparing it to other methods of generating retirement income.

How has the chart changed since the second quarter?

Compared to last quarter, the payout rates for the Wellesley and REIT funds have declined slightly, while the payout rates for the Wellington, Dividend Growth and Equity Income fund have increased slightly. These changes are due to the net result of changes in dividend payouts and interest rates, and appreciation in the underlying fund values.

Note that these funds have different asset allocations between equity and fixed income investments, which is one important reason for the differences in income. The Wellesley fund is invested roughly 37 percent in stocks, with the remainder in fixed income or cash. The Wellington fund is invested roughly 65 percent in stocks with the remainder in fixed income or cash. The Dividend Growth and Equity Income funds are invested nearly 100 percent in stocks, while the REIT index fund is invested nearly 100 percent in real estate investments.

All but the Dividend Growth fund pay dividends quarterly, while the Dividend Growth fund pays dividends semi-annually. The above amounts assume the payout rates for the past 12 months will continue for the next 12 months. Your actual income will change to the extent that future dividend payments are increased or decreased from the past 12 months.

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Retirement scorecard: Interest and dividends

Saving enough for retirement is a big deal, and retirement is just as real and important for self-employed workers as it is for more conventional employees. Unfortunately, the retirement savings options for the self-employed aren't quite as obvious or automatic as they are for regular employees - whenever someone starts a new job, HR often tells them about any company-sponsored plans that are available, but there's no similar mechanism for the entrepreneur.

SEE: Plans The Small-Business Owner Can Establish

Luckily, there is a wide range of options available to those who run their own business. While some approaches are compelling in their simplicity, others allow an owner or operator to squirrel away truly considerable amounts of money for retirement. Although readers should be aware that the details and requirements of these plans can change with the tax laws, here are some of the best options available to the self-employed.

SEP IRAThe Simplified Employee Pension Individual Retirement Account (more commonly known as SEP IRA) is modeled after the IRA account and is the simplest account to establish. There are minimal Internal Revenue Service (IRS) reporting requirements and there are typically minimal restrictions on the types of investments that someone can own through a SEP IRA plan. To set up a SEP IRA, entrepreneurs need to fill out a very basic amount of paperwork with a brokerage that offers this account type.

While SEP IRAs are simple, they are not necessarily the most effective means of saving for retirement. Contributions are limited to 25% of employee wages or 20% of net earnings (before self-employment tax) of owner or operators, which works out to about 18.6% of profits. These contributions are also capped at $49,000 per year, but any contribution can be made in a lump sum at the end of the year. Employers should also note that under most circumstances they will have to contribute the same amount for employees (on a percentage basis) as for themselves, but there is no annual funding requirement.

While investors can usually roll 401(k) distributions into a SEP IRA, it is not possible to borrow against these funds and early withdrawals come with a 10% penalty in addition to regular taxes.

Individual 401(k)An individual 401(k) is more or less like what it might sound a plan for self-run businesses that closely mirrors the 401(k) plans offered by many larger companies. What is different, though, is that an individual 401(k) combines the features of a "regular" 401(k) with a profit-sharing plan. A 401(k) is relatively simple to start and there are only minimal filing requirements with the IRS until plan assets reach over $250,000 (even at which point the paperwork required is pretty simple).

To establish an individual 401(k), a business owner has to work with a financial institution, and that institution may impose fees and certain limits as to what investments are available in the plan. Some plans, for instance, may limit you to a fixed list of mutual funds (typically sponsored by that institution), but a little bit of shopping will turn up many reputable and well-known firms that offer low-cost plans with a great deal of flexibility.

The principal appeal of an individual 401(k) is that a self-employed worker can contribute more. Although the same $49,000 cap applies as with the SEP IRA, the contributions can take the form of salary deferral (up to $16,500) and "profit sharing" (up to 25% of compensation, less if the business is not incorporated) - making it much more likely that a worker can contribute the full amount.

While tax-free loans from plan assets are possible, only the self-employed and his or her spouse are eligible for such a plan.

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Hey Self-Employed, Are You Making The Most Of Your Retirement Options?

The Boomer is a column written for adults nearing retirement age and those already in their golden years. It will also promote reader interaction by posting e-mail responses and answering reader questions. E-mail your questions or topic ideas to thefoxboomer@gmail.com.

When I was a kid and I wanted something, I went straight to my mom. I knew that even if her first answer was no, I could sometimes nag her enough that she would give in to my request. However, when her response was to go ask my father, that usually sent me running to my room crying because there was no nagging dad--when he said no, that was it.

In all families, moms and dads take on different roles when it comes to discipline, managing finances and schedule planning.

When it comes to retirement planning and lending money, men and women take different approaches and hold different views. Ameriprise Financial recently conducted a survey that explored the differences in how baby boomer men and women approach financial conversations and support family members. I reached out to Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial, to find out the differences and their impact on financial planning. Heres what she had to say:

Boomer: The survey finds boomer men are more optimistic about their financial future than women. Why the substantial difference and what do you feel is the reason for the significant drop in these numbers since 2007?

de Baca: What we found in a 2011 report was that more men are prepared for retirement than women, which may contribute to them also feeling more optimistic about it . Theyre more likely to say they have set money aside, and determined the amount of income theyll need in retirement. So in general, men may have more retirement savings socked away and more of a financial plan in place than women do.

Men are also less likely to have exited the workforce to stay at home with children or aging parents, giving them more opportunity to save in many circumstances. The overall level of optimism has declined significantly among both sexes since 2007, which isnt surprised due to the financial crisis and recession.

Boomer: What do you think the reason is that moms are more open to discuss money and finances with their families?

de Baca: Women may be used to having day-to-day discussions with their families about expenses, which could pave the way for more weighty financial conversations. Women could also be talking more about money because they are aware that they may outlive their spouse, and there's an element of financial responsibility to pass along to family members.

Its interesting to note that while moms are more comfortable discussing money issues with their kids in particular their daughters it can still be a stressful discussion. In fact, the daughters of boomers are much more likely than men to say that discussing money is very or somewhat likely to cause tension or an argument in their family (58% vs. 41%).

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Planning for Retirement: How Men and Women Differ

ORLANDO, Fla.--(BUSINESS WIRE)--

The Newport Group, a leading national provider of retirement and executive benefit plans, announced that its My Forecast retirement readiness service is having a dramatic impact on employees retirement account balances, contribution amounts and overall engagement with their plans.

My Forecast allows employees enrolled in Newport retirement plans to instantly see their account balances, retirement income targets, and current projections, and shows them how to easily make adjustments to help them reach their goals. The feature was first introduced in October of 2011, and has been adopted by over 300 Newport plan sponsors to date.

In just a few months, My Forecast has already produced some exciting results, said Dennis Sain, Newports Senior Vice President, Retirement Services. On average, plan participants who use it have seen their account balances grow 40% more than those whose plans dont yet feature My Forecast. These participants are increasing their contributions to their plans. And they access their accounts 25% more often, performing nearly twice as many transactions on the site.

Unlike many other retirement planning tools, My Forecast is placed front and center on the participant website. Upon login to the site, plan participants see an immediate graphical representation of how their contributions support their desired retirement income. Should there be a gap, interactive tools are available to help them get back on track. The feature also differs from other services by allowing employees to add outside financial accounts, plans and assetsgiving them the most comprehensive snapshot possible of their total retirement readiness.

We believe financial services websites should be easy to use, relevant to a persons complete financial picture, and results-oriented, and we have an ambitious strategy underway to redefine Newports online participant experience accordingly, said Eric Brickman, Senior Vice President, Strategic Solutions Group. My Forecast will continue to be an integral part of this strategy, and were pleased to see this approach is already making a real, tangible difference in personal engagement and retirement savings results.

About The Newport Group

Founded in 1984, The Newport Group is a leading retirement services firmspecializing in the creative design and administration of retirement and executive benefit plans. Through its innovative and customized solutions, Newport is uniquely positioned to satisfy the distinct financial needs of employers and employees, and has done so for hundreds of the countrys largest and best-known companies.

Newport is headquartered in Heathrow (Orlando) FL, with service centers in Charlotte NC, Dallas TX, Greensboro NC, La Crosse WI, Orlando, FL, Richmond VA, and St. Petersburg FL. Newport also has offices in Atlanta, Cincinnati, Denver, Los Angeles, Nashville, New York NY, San Francisco, and St. Louis MO. For more information, visit http://www.newportgroup.com.

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Newport’s ‘My Forecast’ Dramatically Boosts Employees’ Retirement Readiness

MILWAUKEE, June 28, 2012 /PRNewswire/ -- BMO Retirement Services, a part of BMO Global Asset Management, has appointed Matt Smith as Director of Retirement Sales and Strategy. Mr. Smith reports to Phil Enochs, Managing Director and Head of Relationship Management for BMO Global Asset Management.

In this newly-created position, Mr. Smith is responsible for building and further defining the firm's holistic approach to providing solutions to the U.S. retirement plan market. This extends to providing thought leadership on critical retirement issues in concert with the renowned BMO Retirement Institute.

According to Mr. Enochs, "Matt is uniquely qualified to lead this dual initiative given his nearly three decades of achievement in the retirement plan industry as a sales manager, business strategist, investment consultant and author."

Mr. Enochs added, "Matt's career-long commitment to make retirement readiness a reality for millions of 401(k) and other DC participants aligns perfectly with our mission to improve retirement security for people. His extensive experience addressing the concerns of plan sponsors, participants and plan advisors adds depth and dimension to BMO's already-strong organization."

Prior to joining BMO Retirement Services, Mr. Smith was Senior Vice President, National DC Practice Leader of Aon Consulting in Seattle. Previously, he was Managing Director of Retirement for Russell Investment Group, General Manager, Retirement Services at ADP, and DC Consultant for Buck Consultants.

Mr. Smith is the author of Managing Your Firm's 401(k) Plan: A Complete Roadmap to Managing Today's Retirement Plan. He is also the co-author of The Retirement Plan Solution: The Reinvention of Defined Contribution and Someday Rich: Planning for Sustainable Tomorrows Today. All three are published by John Wiley & Sons, Inc.

He earned a Bachelors degree from the University of Kansas.

About BMO Retirement Services BMO Retirement Services is a part of BMO Global Asset Management and a division of the Marshall & Ilsley Trust Company N.A., offering products and services through various affiliates of BMO Financial Group.

Established in 1973, BMO Global Asset Management is an integral part of BMO Financial Group, a fully-diversified financial services organization. As of April 30, 2012, BMO Global Asset Management oversaw more than $110 billion in assets under management for institutional and high-net-worth clients and the BMO family of mutual funds.

A Midwest-based registered investment advisor with a 40-year track record of fiduciary service, BMO Global Asset Management in the U.S. is organized into four centers of excellence, each of which is a vital and respected part of the global offering: BMO Asset Management U.S., BMO Funds, BMO Retirement Services and BMO Trust and Custody Services.

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BMO Retirement Services Appoints Matt Smith as Director of Retirement Sales and Strategy

BROOKFIELD, Wis., June 28, 2012 /PRNewswire/ -- Planning for retirement can be a time of great anticipation as well as great anxiety. And, given the current economic climate, many individuals have changed their plans for retirement by either pushing back their retirement date or have considered working part time during their retirement to supplement their fixed incomes. This,according to Jim Cantrell, Certified Financial Planner Professional, Owner and President of Financial Strategies, Inc., a wealth advisory firm in Brookfield, Wisconsin.

While some people close to retirement have changed their goals or approach, others simply don't know what to do. Cantrell, who is also a National Association of Personal Financial Advisors' (NAPFA) Registered Advisor and current NAPFA Board President of the Midwest Region, says, "Daunting uncertainties can creep into your plans and threaten to burst your bubble before it is even fully inflated. While the current economic climate should be cause for caution and concern, careful planning will help you enjoy your retirement the way you had envisioned before the economic turndown." He provides the following five tips to help you create a solid financial plan that will get you back on track and allow you to enjoy the fruits of your labor.

Tip Number 1 Know what you are going to doJim Cantrell offers that "This may seem like a strange tip, however, many people do not plan past the idea of no longer working. They don't think about what will occupy their time once they retire. Your future plans will help you create a better financial plan for your retirement." If you have grandiose thoughts of spending months in exotic destinations, you will need to put a bit more into your retirement fund than if your goal is to do volunteer work and stay close to home. One of the best ways to ensure that your future plans are appropriate for you is to get involved in activities that are of interest before you retire. For example, if you plan to spend your time volunteering, consider giving a few hours a week before retirement to see if this will work with your future plans. Additionally, if relocation is part of your retirement goal, spend time vacationing in the areas you could potential call your future home.

Tip Number 2 Know your benefits"Once you retire, there is a good chance you will not receive the same benefits you did when you were employed," states Cantrell. It is important to talk to your organization's human resources department well before you plan to retire. Consider items such as health insurance, pension and stock options. Each of these things could have a big impact on your finances once you are retired.

Tip Number 3 Diversify your stock optionsAs you approach retirement, it is important to ensure that you do not have an over concentration of stock positions. Sometimes senior management and upper level executives have a lot of their portfolio tied up in their company; however, once they retire they will not have the same level of control in the direction the company takes. Having all your eggs in one basket (or a lot of them) is never a good idea, this is why it is important to consider diversifying your investment portfolio.

Tip Number 4 Move to stable investmentsAs you approach retirement, (at some point say five to seven years prior) consider shifting your investment portfolio from a higher percentage of equities to less riskier, fixed or stable investments. This will make your portfolio a much safer place to go and get your money when you need it.

Tip Number 5 Have a solid plan"In order to enjoy a comfortable retirement, it is important to have a clear understanding of what it will take to retire," Cantrell offers as a final tip. How much will you need to put away to live the lifestyle you currently enjoy, or what things do you plan to cut out? Know what you currently have available and what you will need and put it all down in a solid and workable plan. One of the best ways to ensure that you have a solid plan is to meet with a certified financial planning practitioner (we recommend a fee-only advisor) to create a program that meets all your future needs.

"Retirement should be a time of great joy and relaxation. Planning for this time in life is vital to ensure that the goals you have set will be attainable. Don't let the uncertainty of the current economic climate stop you from planning your retirement," Cantrell concludes. For more information on planning for your retirement, visit the National Association of Personal Financial Advisors' (NAPFA) website at http://www.napfa.org or Jim Cantrell at Jim@retirementandwealth.com. They can offer you important tips and advice and help you find a reputable fee-only advisor who can help you put your plans in place.

About Jim Cantrell and Financial Strategies, Inc. Jim Cantrell, Certified Financial Planner, is Owner and Founder of Financial Strategies, Inc. (FSI). FSI is a Fee-Only wealth advisory firm. Jim is also a National Association of Personal Financial Advisors (NAPFA) Registered Financial Advisor and NAPFA Board President of the Midwest Region, serving North Dakota, South Dakota, Nebraska, Kansas, Minnesota, Iowa, Missouri, Illinois, Wisconsin, Michigan, Indiana and Ohio. He has over 22 years of experience in financial planning and investment advising to top-level executives and other investment savvy individuals and retirees, as well as their families.

FSI's Fee-Only structure ensures that clients receive honest and objective advice that is not dependent upon a commission structure for the financial success of the advisor. Known by clients for their dedication, attentiveness and teamwork, the staff at FSI combines creativity, kindness and professionalism to give the best possible care and service. For more information on Financial Strategies, Inc, please visit, http://www.retirementandwealth.com.

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Five Tips for Effective Retirement Planning

(MoneyWatch) "Fuhgeddaboutit"

If you're relying on an inheritance to fund your retirement, you might want to revise your plan. It's more likely all you're really going to get is a bunch of family stories, with some furniture, used cars, or jewelry thrown in for good measure -- certainly nothing you can take to the bank. At least that's the conclusion you get when you put two bits of information together: The results of a recent survey report from Allianz Life and an in-depth look at the wealth of the older population.

According to the Allianz report, 86 percent of boomers (those age 47 to 66) and 74 percent of elders (those age 72 and over) state that family stories are the most important aspect of their legacy, ahead of personal possessions (64 percent for boomers, 58 percent for elders). Financial assets, which you can take to the bank, are cited as most important by only 9 percent of boomers and 14 percent of elders. In addition, only 14 percent of elders feel they owe their children an inheritance, down from 22 percent who reported they felt this way in 2005.

These results make a lot of sense, given the modest retirement savings of most boomers and retirees. They'll need to use all their savings to avoid another unfortunate legacy -- the need to move in with their children because they've run out of money.

This leads us to the numbers I referred to earlier. According to the 2012 Retirement Confidence Survey from the Employee Benefit Research Institute (EBRI), less than one-fourth -- only 22 percent -- of households headed by someone aged 55 and over have retirement savings of $250,000 or more. We can use numbers from my April 2012 retirement income scorecards to see just how much retirement income $250,000 in retirement savings will generate for a couple both age 65, using various methods of producing a retirement paycheck.

This couple could buy a fixed immediate annuity that would generate an annual payout rate of 5.8 percent, or $14,600 per year. They could also buy an inflation-adjusted annuity with an annual payout rate of 3.9 percent, or $9,688 per year. Add in Social Security income, and it's possible this couple will make ends meet in retirement, but they certainly won't be living high off the hog. And no financial legacy would be left if they used these methods of generating a retirement income.

Retirement income scorecard: Immediate annuities Retirement income scorecard: Managed payouts Retirement income scorecard: Interest and dividends

This couple could also use the four percent rule to generate retirement income: They would invest their savings, withdraw four percent in the first year, and give their retirement paycheck an increase for inflation each year. Their initial retirement income would be $10,000 per year.

This method offers pretty good odds of allowing your savings to last for the rest of your life, but the amount you could leave as a legacy would vary widely. If you live a long time or experience poor investment returns, you could experience "money death" before you pass away, and you'd leave no financial legacy. On the other hand, if you experience favorable investment returns or pass away before your estimated life expectancy, you could leave a substantial legacy.

One more thing: Given the current low interest rates on bonds and expectations for stock market returns, some analysts consider annual payout rates of 3.5 percent or lower to be safe if you don't want to outlive your money; a 3.5 percent payout rate would produce an annual income of $8,750 per year with $250,000 in retirement savings.

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Will an inheritance bail out your retirement?